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Stock Market
Visit the World Stock Exchange in a city to access the Stock Market. Positions: Long vs Short When making a transaction on the stock market, there are two types of positions: Long and Short. A Long position is the typical scenario where you buy a stock and earn a profit if the price of that stock increases. Meanwhile, a Short position is the exact opposite. In a Short position you purchase shares of a stock and earn a profit if the price of that stock decreases. This is also called 'shorting' a stock. NOTE: Shorting stocks is not available immediately, and must be unlocked in BitNode-8. Order Types There are three different types of orders you can make to buy or sell stocks on the exchange: Market Order, Limit Order, and Stop Order. Note that Limit Orders and Stop Orders are not available immediately, and must be unlocked in BitNode-8. When you place a Market Order to buy or sell a stock, the order executes immediately at whatever the current price of the stock is. For example if you choose to short a stock with 5000 shares using a Market Order, you immediately purchase those 5000 shares in a Short position at whatever the current market price is for that stock. A Limit Order is an order that only executes under certain conditions. A Limit Order is used to buy or sell a stock at a specified price or better. For example, lets say you purchased a Long position of 100 shares of some stock at a price of $10 per share. You can place a Limit Order to sell those 100 shares at $50 or better. The Limit Order will execute when the price of the stock reaches a value of $50 or higher. A Stop Order is the opposite of a Limit Order. It is used to buy or sell a stock at a specified price (before the price gets 'worse'). For example, lets say you purchased a Short position of 100 shares of some stock at a price of $100 per share. The current price of the stock is $80 (a profit of $20 per share). You can place a Stop Order to sell the Short position if the stock's price reaches $90 or higher. This can be used to lock in your profits and limit any losses. Here is a summary of how each order works and when they execute: In a LONG Position: A Limit Order to buy will execute if the stock's price <= order's price A Limit Order to sell will execute if the stock's price >= order's price A Stop Order to buy will execute if the stock's price >= order's price A Stop Order to sell will execute if the stock's price <= order's price In a SHORT Position: A Limit Order to buy will execute if the stock's price >= order's price A Limit Order to sell will execute if the stock's price <= order's price A Stop Order to buy will execute if the stock's price <= order's price A Stop Order to sell will execute if the stock's price >= order's price.